Real Estate News, Updates and Market Reports

Menu

Foreclosures May Yield Cash Back To Owner

Foreclosure can be a devastating experience. But for some homeowners, there could be one rainbow at the end of the storm: They might get a little cash. In many states, if a bidder offers more than is necessary to pay off the defaulted debt during a foreclosure auction, the former owner gets the excess cash. However, officials often have a difficult time locating former owners. Such instances of owed cash remain relatively rare. Last year, about 80 percent to 90 percent of foreclosed homes being auctioned were taken back by the bank, according to data provided from Realty Trac. That means that just 10 percent to 20 percent of auctioned homes yielded a surplus. Still, surpluses from foreclosures that occurred years ago sit in unclaimed fund pools run by states and localities, waiting for owners to claim them.

How much could be there?

The process of foreclosure differs by locality. But typically, the home ends up being auctioned. Usually, the lending firm foreclosing on the homeowner bids what is owed in defaulted mortgage debt and takes back the property.
In most states, if another bidder offers more than what’s needed to pay off the defaulted debt, the resulting surplus goes to the former owner.

Are you due funds?
So, how can you find out if you’re owed money after a foreclosure ?
I’ll make it easy for you. (Click the link below)
You can find the report at the National Consumer Law Center website.
All you will need to do is supply your case number and ask if any balance is left.I’d like to note that certain states deal with proceedings in different fashions,so please seek legal advice to find out what best suits your needs in your state.